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Home sales slowest in 5 years

By Brook Stockberger Sun-News Business Editor

Posted:
05/05/2008 12:00:00 AM MDT

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LAS CRUCES — Mike and A. Lukeck put their Las Cruces house on the market two weeks ago and have already attracted potential buyers.

"We have a lot of interest," Mrs. Lukeck said. The couple have had the Coues Deer Avenue house on the market once before and have lowered the price. "We're hoping that will bring some extra attention. I'm pleased with the amount of calls."

Las Crucen Frank Benavidez has had a home for sale near Butterfield Park for a month. He said he gets about two phone calls a week.

"Homes used to sell very fast," he said. "I know it might take a little longer now. And I'm doing owner finance, I'm trying to sell without going through a Realtor, so that might take a little longer."

What was once a red hot market has softened and the number of homes on the market has jumped.

"Sales are much lower than in the past three years," said Donnie Brainard of Alameda Property Group. "Las Cruces hit a high and now we're hovering at the bottom edge of a cycle."

The first quarter of the year has come and gone, with home sales lower than they were in 2004.

According to statistics provided by Steinborn Inc., 336 homes were sold in Las Cruces during the first three months of 2008. That means 172 fewer homes were sold than the same time period a year ago.

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In fact, the 2008 numbers mark the fewest sold during a first quarter than in the past five years.

John Hummer, owner/broker of Steinborn Inc., said Las Cruces has profited from an influx of newcomers. But when the national housing market stumbled, it slowed the flow into southern New Mexico.

"Given the very significant slowdowns on both coasts and in key markets from which Las Cruces has benefited from individuals relocating, it is not surprising we'd have a slowdown," he said.

It is also taking longer for homes to sell. Four years ago, the average home took 83 days to sell in the first quarter. This year it's 146 days.

There are more than three times as many homes on the market this year than four years ago. The first quarter of 2004 saw 474 listings while this year there were 1,593.

Still, some professionals who study the local economy believe the Las Cruces real estate market is due for an upswing.

"The local economy is doing very well and that's sufficient to buoy the real estate market," said Christopher Erickson, a professor of economics at New Mexico State University.

Hummer said that what he calls the pipeline — the flow of home buyers on their way to Las Cruces — will soon start to accelerate.

"We have been seeing an increase in activity, the office has been busy," he said. "The pipeline is getting filled with perspective buyers, although some of them have to wait to sell their home (elsewhere). When we start seeing improvements around the country, that's going to yield benefits here. That might take a couple more quarters."

"We'll return to a more accelerated pace again," Brainard said.

"We're still seeing tons of interest from California and places like Wisconsin," said Rick Stoes, managing director of the Grubb & Ellis office in Las Cruces. "I think we're still ahead of the nation."

The average price of a home in Las Cruces has remained strong. Through the first quarter of 2008, the average price was $213,106, down from last year's mark of $221,230, yet still more than $50,000 higher than the first quarter of 2004, when the average was $154,165.